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Digital video series: What is the future of online video advertising and will it take over from TV? The Drum catches up with a cross-section of the online video industry to discuss the evolution of online video advertising. As part of The Drum’s latest digital media supplement, focused on the opportunities of online video, we are publishing a series of articles exploring a range of topics, from how to produce effective branded content to the challenges of video real-time bidding. In today’s article, we ask: What is the future of online video advertising and will it take over from TV?
As for whether digital video will take over from TV, I think digital video is more likely to take budget spend away from other mediums, such as print, outdoor or digital display, rather than TV.
Our recent 2013 UK Digital Video Advertising report gives a clear indication of where things are headed in this space.
As with any development within advertising, including the future of online video advertising, it depends on the audience. The future of online advertising is intertwined with how the video on demand (VOD) market develops. I don't believe however, that TV will ever stray too far from the centre of campaigns, as it can still draw large crowds and produce high volumes of impressions from a marketing perspective.
TV will always have its place, but will come under increasing pressure to become more accountable, especially with the advent of connected TV. It is essential to understand that they are different mediums, using similar ad formats, that should be complementary to one other, like any other type of media.
The future of online video advertising will focus on addressable media – the ability to target people based on their age, gender and interests. The winner will be the player that can generate the most efficiency – providing the right message to the right audience at the best price. Data will define the future of video advertising, playing a role before, during and after ads are seen by the consumer. Online video won’t take over from traditional TV per se, it’s not simply a case of one medium replacing another. With constantly improving streaming capabilities on smartphone and tablet devices, including rising 4G network subscriptions, consumers are watching video content on more than just their TV. Online video advertising won’t kill TV, although as more and more content is viewed on smart TVs there will obviously be a shift. To put it another way, thata€™s like watching the 1954 Cecile B Demille classic The Ten Commandments six times in one month (dona€™t try this at home-or anywhere).
For business owners and marketers, the explosion in online video consumption represents a massive opportunity if handled properly.
Any decent online video marketing strategy should also take into account the rapid consumer shift to mobile devices generally and tablets specifically. 11:19 am September 15, 2010 By Julian Horsey Tweet Share1 +1Shares 1Nielsen has been studying the effect of in game advertising on real-world products and its findings do show that adverts in games will increase the sales of the product in the real-world environment.
The study was based on Nielsen’s US Homescan panel of more than 100,000 households, representative of the US population, including a subset of Homescan homes that scanned video game UPC (Universal Product Codes) barcodes.
Nielsen compared the households that purchased at least one of the studied games before and after Gatorade branding was integrated into the games (the test group) with households that didn’t purchase one of the games (the control group). Video and in particular video advertising is a particularly effective way for brands and marketers to engage consumers while promoting their products and services. To better understand this surge in popularity, Yannig Roth and I, Rosemary Kimani, sought to understand this shift further and wrote a book chapter on it. This new environment fueled by new technologies and social media puts the responsibility on marketers and brands to be nimble enough to have an on-going conversation with consumers, all the time.
In another contest for Danone’s South African brand Yogi-Sip, the objective was to gather creative ideas to inspire TV advertising around the theme of the coolest way to keep going. Crowdsourcing in this model is specific to the search for ideas and for the talents to execute those ideas.
Our book chapter explains that simple contests were the first to appear and that other models followed in recent years. Rosemary Kimani, an ex- advertising agency strategic planner, joined eYeka first as a senior strategic planner and then became Global Business Director focusing on US clients until April 2014. This entry was posted in Our expertise, Trends & prospective and tagged advertising, crowdsourcing, video. Programmatic video advertising selection keeps on developing notwithstanding the computerization as yet incorporating a minority share of aggregate US digital video ads spending. With regards to video, programmatic from an inventory perspective of view is altogether different.
Keeping in mind eagerness for computerizing the procedure of digital video advertisements stays high,venture trails in contrast with the more extensive advanced showcase market.
In any case, for purchasers, their worries about programmatic amplify past that of the lack of premium stock and issues of advertisement quality. Programmatic Video Advertising Market Size In its recent reports, Future Market Insights offers a four-year forecast (2015?2019) of the global programmatic display advertising market. Industry leaders took the stage at the Brightroll Video Summit in NewYork to have a discussion where the programmatic video market is headed. Everything going to be programmatic in future, However, That’s because programmatic buying, although largely understood to be permanent and well?established within the world of display advertising, is still A very much in its infancy with the respect to online video. In contrast, when it comes to real-time bidding platforms, advertisers are being forced to blindly have trust in them and receive no verification at all.
Related Items:Advertising, Advertising Trends, broadcasters, business, CMO's Guide to Programmatic Buying, Digiday, Digital Marketing 101, Digital video, digital video advertisements, digital video promotion, eMarketer, How Programmatic Advertising Works, How Programmatic Video, In-Stream Video Advertising 101, market dynamics, Media Buying 101, Mobile Advertising 101, Native advertising 101, online advertising. We watch more than 6 billion hours of video on YouTube every month, which represents a major opportunity for businesses to reach their audiences active on this network every day. Advertisers are able reach the right users with relevant video content in the form of display ads (ads appearing throughout the website and search), overlay in-video ads (ads located at the bottom of the video), in-stream ads (ads that play before, during or after another video is played) and in-display ads (ads appearing on the right hand column next to your video) on YouTube. To achieve these goals, it’s important to avoid common pitfalls when running a YouTube video ad campaign. The various YouTube video ad formats suit different types of campaigns, which can help your organization better achieve a variety of goals.
If you’re trying to promote existing video content on your YouTube channel, drive traffic to your website or generate awareness of a product line or service offering, display ads can help achieve these goals.
Avoid repurposing existing video content; create a video specifically for use on YouTube to generate awareness about your products, services or latest promotion.
YouTube is much higher in the sales funnel compared with many other marketing tools or channels, which is why it’s essential that your business have a strong understanding of the intent of those who discover your video ad. They aren’t likely to convert into customers from seeing your video ad for the first time, but if their intent is matched to the content of your ad, they are more likely to watch it and perform an action in the long-term after seeing more messaging in the future on YouTube and across other channels.
In this example above, the user is curious about the benefits of a Smart car and would like to watch a video on the subject. The selection of the thumbnail for your video ads is critical when it comes to generating a strong marketing ROI from your content; the right image can really spike the click-through rates on your ads.
You have about five seconds to impress someone to the point that they choose to watch the rest of your video before they skip your ad, close their browser or go elsewhere online.

In the first few seconds, focus on clearly defining what value users will take away from watching your video.
As a form of content marketing, the point of your YouTube videos is to drive your audience to interact with your business in some capacity, whether that’s to comment on the video or buy your products.
Add contact information like a phone number, website URL, Twitter handle, an email address or other pertinent contact info, when appropriate. What strategies have you found most successful at increasing conversions with your YouTube ads? This infographic from Yume comes to us via Los Angeles Hyundai and explores “Important Details You Should Know When Placing an Ad”. In 2012 the quantity of video promotion impressions purchased through RTB trades multiplied year over year; this year, the quantity video impressions will best 100 billion.
Invite Media is a high effect demand-side platform that empowers advertisers, organizations and office exchanging work areas to utilize real-time bidding to purchase and streamline online media.
Purchasers can utilize Invite Media’s innovation to set up and oversee programmatic systems to encourage canny purchasing over all real wellsprings of real-time bedded stock, all in a solitary interface. In 2007, MediaMath presented the main demand-side platform (DSP), changing the way digital media is bought, and making another, more proficient route for advertisers to achieve customers, independently, at scale. Today, MediaMath is the worldwide innovation organization that is engaging cutting edge marketers to rethink the way their marketing performs by changing the innovation that forces it.
DataXu was established by MIT aeronautics n and astronautics researchers who composed the combinatorial language that guided NASA’s Mars mission arranges. Video Ads has gotten to be popular trend in digital marketing, particularly for millennials.
Video content is the most proficient and direct approach to reinforce purchaser engagement and augment group of onlookers range, and as the latest option to our One Platform arrangement, it enables publishers with the accompanying key adaptation benefits As individuals expend more video substance and move their review propensities to various screens and gadgets, publishers have the chance to catch their consideration by adding video to their current versatile and desktop stock. Automatic buying is another method for obtaining show ads, and numerous advertisers and publishers are still not completely versed all the while.
RTB video spending will likewise develop at almost three times the rate of general video spending, ascending at a compound yearly development (CAGR) rate of 57% versus 20% for video generally speaking. All out US RTB digital display advertising spending will ascend by 73% this year, after dramatically increasing in 2011 and almost multiplying again in 2012.
Every day, agency trading desks like IPG Mediabrands and Xaxis are using software like ours to buy ads that appear on TV content – the difference is the content is now streamed on computers, tablets and more. Advertisers are seeing the benefits of automated buying with VOD and it won't be long before they start demanding its use elsewhere. We are rapidly moving towards being able to effectively reach a consumer on whatever screen they are using at any given time.
This will be the single highest drive behind the development of online video advertising, and could see it take the majority hold away from TV.
TV continues to be the best way to reach mass audiences and delivering high impact, but online and mobile video are very strong compliments to it. The introduction of online GRPs into the digital lexicon demonstrates a shift in the way that digital marketers are approaching video advertising, and targeting TV budgets. Linear TV’s issue of wastage, which is currently still the norm, will become less acceptable over time. There is no doubt that the proliferation of different devices including mobile phones, tablets, living room entertainment systems, connected TVs, to name a few, are fundamentally changing how people access and engage with TV and video content. We’ll move further away from simply buying environments and focus on our specific audience and the story we tell to them.
What we will see is a convergence of video media as it’s accessed through an ever increasing range of devices, it will be driven by data and differentiated by the context, not the environment in which it is viewed. Rather than take over from TV, online video advertising and TV will unite forces and become one. Additionally there are interesting second screen opportunities that can link with on demand and linear TV, so there's a lot of activity in this area.
The ability to watch video content on numerous devices will continue the growth of online video advertising. In the short term online and offline planning and buying will continue the process of convergence. Video actually has the opportunity to complement TV as people can download video content to their phone that allows them to interact with TV programming.
New data from comscore Video Metrix reports that in May of 2012, 84.5% of the US internet audience watched online video.
According to a Brightroll survey of US ad agencies, high prices, limited reach and lack of targeting are considered the top three growth hurdles.
To be effective, your online video marketing strategy should incorporate a healthy mix of video content that mirrors and compliments your other content marketing media. This is the first time that this type of sales lift analysis has been done for advertising within video games.
The scanned barcodes were matched to a reference library of more than 14,000 video game titles.
How can brands increase their supply of creative, fresh content while keeping their production budget in check? For example, eYeka has launched several idea contests on behalf of several brands:  Actimel yoghurt from Danone was looking for original stories of how Actimel gives people the inner strength to do great big things.
Clients post their briefs along with a budget and deadline and participants respond with a “pitch” that presents their ideas and the execution of those ideas. According to them, this helps increase the diversity of contributors, from average consumers with ideas at the first stage to professional filmmakers at the final stage. Now working at LA-based Sensis as New Strategic Planning Director, Rosemary blends her strategic and digital background with keen consumer understanding to curate, story-tell and guide clients. More purchasers hope to develop their video advertisements overall big screens with a goal to reflect the ways media is presently customers, yet remarkable issues connected with gathering of people distinguishing proof, focusing on and estimation are hindering that directive.
Here’s what the landscape looks like for publishers and buyers and a few of the surprising trends affecting programmatic video so far in 2015. While a desktop video is finally maturing from a programmatic standpoint, mobile video is still in its early days. All real?time?bidding (RTB) platforms should offer the pre-bid reviews of the inventory which area intend to sell, and many do. As a result, the process of buying online video ad space in the real time is usually opaque and misleading for advertisers. These videos should have a strong ROI to support the growth of your business, reach the right users and be cost effective in order to work properly for your organization. Since these ads are brief, their main purpose is to generate traffic to your web properties. Tell your viewers what action you’d like them to take after watching your video, like viewing another video on YouTube. An ad is populated based on the keywords used in this search; in this case, Cadillac wants to inform the user about one of its latest models. YouTube ads are based on CPV (cost-per-view), which tend to be cheaper than an average CPC (cost-per-click) of AdWords, giving you a little more flexibility in your keyword targeting.

To help encourage a YouTube user to click on your ad, choose thumbnails that are relevant to the subject of the video. This is important because your thumbnail should give the impression that your video is from a quality source. It’s important to wow a person by quickly catching their attention with your video ad through an offer, exclusive information or surprising messaging. In this example above, Longhorn Steakhouse discusses its new pricing on some of the most popular dishes by quickly calling out the price within the first few seconds of the ad in hopes of catching a viewers attention. At the end of your video, focus attention on a call-to-action, either written or verbal, that tells your audience what specific action you’d like them to take. Remember to include the name of your business, as well as a logo as a part of the call-to-action for an additional reminder of who your are. All other products, services, and company names are trademarks, registered trademarks or service marks of their respective owners. Even companies that do not operate primarily online such as retail shops must still using the internet to be found and to expose their wares to the public.
Drawn by the productivity and focusing on offered by automatic purchasing, RTB spending in plain view designs has risen quick. With the capacity to apply information from any real source, in addition to the opportunity to make business rules for bidding and streamlining, Invite Media gives purchasers adaptable control over campaign execution. Our Terminal One Marketing Operating System permits marketers to enact information, robotize or programmatic execution, and upgrade buyer corporations over numerous channels.
These researchers – joined by prime supporters with broad digital media and customer gadgets mastery – inspected potential business applications that would profit by a framework that could settle on real-time decisions.
The millennials are the more visual, so video Ads would be more intelligent and appealing for them. More organizations improve their site for SEO reason as well as make their site mobile responsive.
Additionally, video represents its own particular difficulties to the RTB model; premium valuing has made publishers hesitant to move a lot of stock onto RTB markets too quick. Nielsen Online Campaign Ratings gives agencies a way to make direct comparisons to TV, and products like our own BrandPoint help them act on that reporting. However, in order to achieve this, advertisers need to be buying their media programmatically and centralising the decision-making process. We will be creating a more effective dialogue and gaining a far deeper understanding of our viewing audience.
What’s more, as consumers are plugging their digital devices into TVs to watch online video content, they’re also seeing online video ads on the biggest screen in their homes. Part of this process is that both TV and online video mediums need to learn from each other.
Online video advertising will grow into a whole new area of creativity, which we have already seen the forerunners of this year with Vine and Instagram. In May of 2012, over 10 billion online video ads were viewed, more than double the 4.6 billion in May of 2011. This rise of video advertising content has helped pave the way for open innovation, crowdsourcing and co-creation to emerge as effective solutions in the creative and advertising production processes. Tapping into the eYeka creative community, members of the crowd were asked to submit their ideas in the form of pictures, slide show presentations, storyboards or other print formats that could bring their ideas to life.
The value from this type of contest comes in brands getting a high number of raw ideas to inspire their advertising. Rosemary believes that life is to be “lived” and she is passionate about travel, good food and running. This study offers the analysis results of the market dynamics and trends in all seven regions, which influence the current nature & future status of the global programmatic display advertising market over the forecast period. Publishers are still deciding how and when to make their mobile video available programmatically. It’s likely they are a bit higher in the funnel, just entering the research and discovery phase when viewing your video messaging. In some video ads, perhaps even a promotion of some kind will help improve the likelihood that your call-to-action will drive results. Also, digital video as of now a quickly developing configuration—is presently seeing a huge rate of that RTB cost.
In reality, as we know it where span and proficiency are regularly at war, you require innovation and math to deal with your marketing nearness.
Turn’s real-time end-to-end media management platform conveys custom gatherings of people at scale with unmatched execution and significant bits of knowledge. The organization is headquartered in New York City with workplaces in Connecticut, Illinois, and Michigan. They give the main real-time media management platform for digital publicizing effort crosswise over on the web, portable, and video channels.
Furthermore, sooner rather than later, the video Ads are anticipated to supplant customary presentation ads, which are less engaged and involved for the audience. Be that as it may, as more acclimate themselves with the procedure, the stock and relating dollars will climb.
However what is and will always remain true is that consumers will always be interested in high quality entertaining content regardless of its source and delivery mechanic. The personalisation that advertisers are used to in the online world will sync with TV advertising.
Traditional TV has to keep up with the tracking and targeting capabilities of online video technologies. The creator’s winning entry was featured as a TV commercial and amplified on social media networks. Mobile took place after desktop, Though it may still be in its early days, mobile video has potential to drive businesses forward with high engagement rates and location?specific data. Finally, incorporate color into your thumbnail to ensure it stands out from other video thumbnails that appear on a viewer’s screen at any one time. The organization is situated in Silicon Valley with areas in New York City, Chicago, San Francisco, Los Angeles and Charlotte. With a transformative way to deal with digital promoting – joining digital media purchasing, enhancement and investigation – DataXu helps brands and their organizations use dynamic advertisement decisions knowledge for the most astounding media adequacy, better operational efficiencies, and remarkable shopper experiences. The online video advertising sector has to find metrics that attract the attention of the TV planners and buyers who make their decisions on gross ratings points. In particular, in future, we would love to see the more diversity of inventory in terms of content types, length, and category.
DataXu is headquartered in Boston, Massachusetts, and is upheld by Atlas Venture, Flybridge Capital Partners and Menlo Ventures.

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